European stocks climbed as concern that Greece would defy its creditors eased after the nation retreated from a plan to ask the euro area to write down debt.
The Stoxx Europe 600 Index rose 0.8 percent to 370.28 at the close of trading. The gauge pared gains of as much as 1.3 percent after a person familiar with the matter said Germany expects talks with Greece to drag on until the current round of aid runs out.
Greek stocks surged 11 percent, posting the best two-day gain in 24 years. Finance Minister Yanis Varoufakis proposed late on Monday to exchange Greece™s existing debt for new bonds linked to economic growth, according to a person who attended a meeting. Spain™s IBEX 35 Index and Italy™s FTSE MIB Index added at least 2.6 percent, rebounding from two-day drops.
National Bank of Greece SA and Eurobank Ergasias SA rallied at least 18 percent, pushing a gauge of Greek lenders higher. The benchmark ASE Index slid 13 percent last month, with banks tumbling to record lows, after anti-austerity party Syriza formed a new coalition government.
Source : Bloomberg